INCOME TAX ASSESSMENT ACT 1997 - SECT 26.22 Political contributions and gifts

INCOME TAX ASSESSMENT ACT 1997 - SECT 26.22

You cannot deduct political contributions or gifts

  (1)   You cannot deduct under this Act (other than Subdivision   30 - DA):

  (a)   a contribution (including a membership fee) or gift to a political party that is registered under Part   XI of the Commonwealth Electoral Act 1918 or under corresponding State or Territory legislation; or

  (b)   a contribution or gift to an individual when the individual is a candidate in an election for members of:

  (i)   an * Australian legislature; or

  (ii)   a * local governing body; or

  (c)   a contribution or gift to an individual who is a member of:

  (i)   an Australian legislature; or

  (ii)   a local governing body.

Exception for employees and office holders

  (2)   However, subsection   (1) does not apply to a loss or outgoing incurred in gaining or producing assessable income from which an amount is required to be withheld under section   12 - 35 or 12 - 45 in Schedule   1 to the Taxation Administration Act 1953 .

Note:   These provisions of the Taxation Administration Act 1953 require amounts to be withheld from income of employees and office holders.

Starting and stopping being a candidate

  (3)   For the purposes of this section, an individual:

  (a)   starts being a candidate when the individual's intention to be or to attempt to be a candidate for the election is publicly available; and

  (b)   stops being a candidate at the earlier of:

  (i)   the time when the result of the election is declared or otherwise publicly announced by an entity (an electoral official ) authorised under the relevant electoral legislation; and

  (ii)   the time (if any) when the individual's intention to no longer be a candidate for the election is publicly available.

Starting being a member

  (4)   An individual who becomes a member as a result of an election (including an election that is later declared void) is taken to start being a member when the individual's election as a member is declared or otherwise publicly announced by an electoral official.